2 TRANSPORTATION AND THE ECONOMY
IMPORTANCE OF TRANSPORTATION TO THE CANADIAN ECONOMY
VALUE-ADDED OUTPUT OF COMMERCIAL TRANSPORTATION
Value-added estimates 5 of output are available for
transportation services that are offered on a commercial
or for-hire basis. Such estimates do not include
transportation services that are operated by a company
for its own use, such as private trucking.
In 2004, commercial transportation industries
accounted for $43.3 billion (1997 dollars), or 4.1 per cent
of the GDP in Canada, a marginal increase over 2003.
Trucking was the most important industry, making up
$14.4 billion or 1.4 per cent of the total output. The air and
rail transportation industries accounted for $3.8 billion
(0.4 per cent) and $5.5 billion (0.5 per cent), respectively,
while urban transit accounted for $3.3 billion (0.3 per cent)
of GDP.
Table 2-4 shows the contributions of the different
modes to Canada's GDP in 2004.
TABLE 2-4: COMMERCIAL TRANSPORTATION AS A PROPORTION OF GDP, 1 2004
| |
Millions of
constant 1997
dollars |
Per cent
of GDP |
| Industries |
|
| Air |
3,780 |
0.4 |
| Rail |
5,452 |
0.5 |
| Water |
1,396 |
0.1 |
| Truck |
14,412 |
1.4 |
| Urban transit systems |
3,265 |
0.3 |
| Interurban and rural bus |
204 |
0.0 |
Miscellaneous ground
passenger transportation |
1,763 |
0.2 |
Other transportation 2 |
13,007 |
1.2 |
Transportation industries |
43,279 |
4.1 |
- Gross Domestic Product at Basic Prices.
- Includes scenic and sightseeing, postal and courier services as well as support activties for
other modes of transportation such as baggage handling, pilotage, harbour operation and rail
car loading and unloading.
Source: Statistics Canada Cansim Table 379-0019
TRANSPORTATION-RELATED DEMAND
The total of all transportation expenditures for the final
demand of goods accounted for 12.5 per cent of expenditures
in Canada's economy in 2004. Personal expenditures on
transportation were the largest portion of the demand and
accounted for 8.2 per cent of GDP, an increase of
two per cent over 2003. However, this was lower than the
five per cent per year average growth rate of the previous
five years and reflects a one per cent decrease in motor
vehicle purchases. Transportation equipment purchases,
mostly motor vehicles, made up 3.6 per cent of the GDP,
while other motor vehicle expenses, including maintenance
and repair, fuel and licences, accounted for another
six per cent. Personal expenditures on commercial
transportation were one per cent of total GDP. For a more
detailed breakdown of personal expenditures for
transportation, see Table A2-65 in the Addendum..
Investment in transportation made up 2.6 per cent of
the GDP in 2004. Investment by business accounted for
the largest portion of this, 2.0 per cent of GDP. Even
though investment in transportation equipment rose
5.1 per cent, overall, business transportation investment
fell by 1.3 per cent, as investment in inventories, primarily
in motor vehicles, fell sharply. Government investment in
transportation was heavily dominated by expenditures on
roads, which made up 89 per cent of spending and
accounted for 0.6 per cent of the GDP. For more detailed
information on government transportation spending, see
Chapter 3 of this report.
TABLE 2-5: TRANSPORTATION DEMAND AS A PROPORTION OF GDP, 2004
| |
Millions of
dollars
2004 |
Per cent
of GDP
2004 |
Per cent
Annual
Growth
2003 -
2004 |
Per cent
Annual
Growth
1998 -
2003 |
| Personal Expenditures on Transportation |
106,453 |
8.2 |
3.2 |
5.0 |
| New and used transportation equipment |
46,695 |
3.6 |
(3.1) |
4.8 |
| Repair and maintenance expenditures |
14,858 |
1.1 |
6.0 |
6.2 |
| Transportation fuels
and lubricants |
24,137 |
1.9 |
11.6 |
7.7 |
| Other motor vehicle related services |
7,973 |
0.6 |
7.5 |
4.4 |
| Purchased commercial transportation |
12,790 |
1.0 |
7.8 |
0.8 |
| Investment in Transportation |
33,936 |
2.6 |
0.4 |
N/A |
| Business investment in transportation |
25,849 |
2.0 |
(1.3) |
N/A |
| Transportation infrastructure (roads and railways) |
2,270 |
0.2 |
5.2 |
6.8 |
| Transportation equipment |
21,823 |
1.7 |
5.1 |
2.1 |
| Inventories |
1,756 |
0.1 |
(46.3) |
N/A |
| Government investment in transportation |
8,087 |
0.6 |
6.2 |
3.9 |
| Transportation infrastructure (roads) |
7,168 |
0.6 |
10.1 |
4.4 |
| Transportation equipment |
919 |
0.1 |
(16.8) |
1.2 |
| Government Spending on Transportation 1 |
12,043 |
0.9 |
(0.2) |
1.8 |
| Road maintenance |
7,133 |
0.6 |
(7.7) |
1.3 |
| Urban transit subsidies |
2,910 |
0.2 |
10.3 |
(1.2) |
| Other spending |
2,001 |
0.2 |
17.0 |
9.8 |
| Exports |
102,180 |
7.9 |
4.6 |
2.2 |
| Automotive products |
90,323 |
7.0 |
3.4 |
2.2 |
| Commercial transportation |
11,857 |
0.9 |
15.3 |
2.4 |
| Imports |
93,077 |
7.2 |
2.8 |
2.9 |
| Automotive products |
77,303 |
6.0 |
1.2 |
2.7 |
| Commercial transportation |
15,774 |
1.2 |
10.9 |
3.9 |
| Total Transport-Related Final Demand |
161,535 |
12.5 |
3.6 |
N/A |
| Gross Domestic Product at Market Prices |
1,293,289 |
100.0 |
6.1 |
5.9 |
| Transportation-related domestic demand |
150,742 |
11.7 |
3.5 |
N/A |
| Final Domestic Demand |
1,229,458 |
95.1 |
5.6 |
5.5 |
Note: N/A = Not available.
1 2004 figures: growth rates over previous year are growth rates over 2002.
Source: Statistics Canada National Income and Expenditure Accounts, Transport Canada
Automotive trade dominates transportation exports and
imports. In 2004, exports of automotive equipment,
including parts, were equivalent to 7.0 per cent of the
GDP, while imports were equivalent to 6.0 per cent.
Automotive exports rose 3.4 per cent in 2004, while
automotive imports rose 1.2 per cent.
Transportation-related domestic demand made up
11.7 per cent of final domestic demand in 2004. This is
lower than the percentage for transportation-related final
demand, reflecting the importance of automotive products
to Canada's external trade.
PROVINCIAL AND TERRITORIAL
TRANSPORTATION SPENDING
COMMERCIAL TRANSPORTATION
Table 2-6 shows the importance of provincial and
territorial commercial transportation 6 to the Canadian total
transportation GDP and to total provincial/territorial GDP.
Most of the commercial transportation activity took place
in Ontario and Quebec, which together account for
58 per cent of the total commercial transportation
measured in GDP. Alberta and British Columbia
accounted for 28 per cent. Transportation was most
important to the Manitoba economy where it accounted
for 6.1 per cent of GDP.
TABLE 2-6: COMMERCIAL TRANSPORTATION AS A PER CENT
OF GDP BY PROVINCE AND TERRITORIES, 2001
| |
Millions
of
dollars
|
Per cent of
total Canadian
|
Per cent of
total provincial/
territorial
|
| Newfoundland and Labrador 1 |
448.7 |
1.1 |
3.5 |
| Prince Edward Island 1 |
74.4 |
0.2 |
2.4 |
| Nova Scotia 1,2 |
1,015.0 |
2.4 |
4.3 |
| New Brunswick 1,2 |
1,011.6 |
2.4 |
5.4 |
| Quebec |
9,053.4 |
21.3 |
4.2 |
| Ontario |
15,405.9 |
36.3 |
3.7 |
| Manitoba 1 |
1,975.1 |
4.7 |
6.1 |
| Saskatchewan |
1,193.0 |
2.8 |
3.8 |
| Alberta |
5,175.5 |
12.2 |
3.5 |
| British Columbia |
6,875.7 |
16.2 |
5.6 |
| Territories 1,2 |
182.4 |
0.4 |
3.7 |
Note: GDP at basic prices.
1 Includes warehousing.
2 Includes pipeline.
Source: Statistics Canada Cansim Table 379-0025
PERSONAL TRANSPORTATION
In 2003, Canadians spent $103.1 billion on personal
transportation. Of this total, Ontario residents accounted
for 40 per cent, Quebec residents 23 per cent, British
Columbia residents 13 per cent, and Alberta residents
11 per cent.
On a per capita basis, Alberta residents spent an
average of $3,684 on transportation in 2003, the most of
any province or territory. Nunavut residents spent the
least, only $1,026. Other than Alberta, only Ontario,
Yukon and Northwest Territories residents spent more
than the national average of $3,257.
On average, Canadians spent 15.0 per cent of total
personal expenditures on transportation in 2003. Quebec
residents spent 16.0 per cent of their total personal
spending on transportation, the highest proportion of any
province or territory.
Personal expenditures on transportation represented
8.9 per cent of final domestic demand in Canada in 2003.
It made up at least 9.0 per cent in New Brunswick,
Quebec and Ontario, but only 6.2 per cent in the Yukon,
4.5 per cent in the Northwest Territories and 1.7 per cent
in Nunavut.
Table 2-7 shows personal expenditures on
transportation by province and territory in 2003.
TABLE 2-7: PERSONAL EXPENDITURES ON TRANSPORTATION BY PROVINCE AND TERRITORY, 2003
| |
Millions
of
dollars |
Per
capita
dollars |
Per cent
of total
Provincial/
Territorial
personal
expenditures |
Per cent
of total
Canadian
personal
transportation
expenditures |
Per cent of
Provincial/
Territorial
final
domestic
demand |
| Newfoundland and Labrador |
1,452 |
2,801 |
15.2 |
1.4 |
7.9 |
| Prince Edward Island |
372 |
2,711 |
14.2 |
0.4 |
8.1 |
| Nova Scotia |
2,720 |
2,905 |
14.3 |
2.6 |
8.2 |
| New Brunswick |
2,240 |
2,982 |
15.8 |
2.2 |
9.1 |
| Quebec |
24,027 |
3,207 |
16.0 |
22.8 |
9.5 |
| Ontario |
40,716 |
3,322 |
14.7 |
40.0 |
9.0 |
| Manitoba |
3,229 |
2,780 |
13.7 |
3.1 |
8.3 |
| Saskatchewan |
2,866 |
2,882 |
14.1 |
2.7 |
8.1 |
| Alberta |
11,637 |
3,684 |
15.3 |
11.2 |
8.0 |
| British Columbia |
12,919 |
3,111 |
13.8 |
12.6 |
8.5 |
| Yukon |
112 |
3,659 |
14.3 |
0.11 |
6.2 |
| Northwest Territories |
142 |
3,353 |
12.7 |
0.14 |
4.5 |
| Nunavut |
30 |
1,026 |
6.9 |
0.03 |
1.7 |
| Canada |
103,131 |
3,257 |
15.0 |
100.0 |
8.9 |
Source: Statistics Canada
5 A value-added measure of output is referred to as net output and is equivalent to gross output or total sales net of goods and services purchased by a firm
as intermediate inputs and includes only primary inputs such as labour. Back
to text
6 Due to unavailability of constant dollar estimates of provincial GDP by industry only current dollar estimates of transportation are available. The latest year
for which they are available is 2001. For some provinces and territories it is not possible to obtain estimates that do not include warehousing and/or pipelines
due to confidentiality reasons. Back
to text
Canadian Economic Performance
International Trade and Trade Flows
Areas of Importance to Transportation
Productivity and Price Performance of Transport
Importance of Transportation to the Canadian Economy
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